The headline German IFO Business Climate ticks up to 106.8, significantly less than expected. Also the expectations component rises to only 102.5 points and the current assessment falls short with a drop to 111.3 points. While this is lower than expected, it is in line with the ZEW numbers.
EUR/USD extends its falls to 1.1325.
IFO is considered Germany’s No. 1 think-tank, but ZEW releases its numbers beforehand. The crisis in Greece and the ongoing troubles in Ukraine weigh on confidence.
The head of the IFO institute, Sinn, said that Greece should exit the euro-zone “for the benefit of its own people”. He said it would not lead to contagion and needs to regain competitiveness.
The German IFO Business Claimte number for February was expected to continue advancing, to 107.7 points from 106.7 reported for January. The expectations component carried expectations for a move from 102 to 103 points and the current assessment from 111.7 to 112.7 points.
EUR/USD began the week on the back foot, falling to 1.1337 before the publication.
Business confidence has been on the rise in recent months after long months of falls in the first part of 2014. However, the latest release from ZEW showed a weaker than expected advance.
The Greek crisis has seen a temporary relief with a deal on a 4 month extension on Friday. Nevertheless, the crisis is far from over.
In this week’s podcast, we cover Questions for traders, State of Fed, Greek crisis, oil, gold and GBP
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